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SAP 2.79/WP.138
The industry has the potential to grow at 20 per cent annually into the foreseeable future, with commensurate contribution to employment growth. However, competition exists and new competition is appearing all the time. China is becoming a major player, given its low labour costs, while Colombia is a well-established player due to its good prices and transport availability. Thus, there is constant pressure on Ecuadorian companies to improve competitiveness. In this respect, the inefficiency of air transport remains a fundamental obstacle to the development of the sector, as well as technological, market and environmental issues which may impinge on competitiveness.
The industry has seen welcome expansion to other provinces in recent years. Further expansion will require the orderly development of services in support of the sector, such as research, training and technical assistance. Experience gained in quality improvement of roses should be consolidated to establish an internationally identified image of the Ecuadorian flower industry.
In the area of training, on the side of businessmen there is no gainsaying that they should be better trained on conditions in the market, especially with respect to prices and costs. On the side of the workers what is needed is training with a broader coverage and intensity, especially in areas related to occupational safety and health and handling of chemicals. At the social level, a knowledge of birth control would also be useful so that workers can participate in their own family planning. At the broader level businessmen need to be sensitized to the organization of unions; the fact that there have been no labour disputes up to now does not mean they will not occur in the future.
Services such as nurseries, private medical insurance and training should be provided on a common basis and be regarded as a strategy for enhancing the overall competitiveness of the sector. Productivity and quality incentives should also be seen as not hindering but enhancing competitiveness. No measures of this nature have so far been implemented by any of the companies, perhaps out of fear of losing competitiveness.
Most companies, in tune with other production sectors, demand more labour flexibility that will allow them to maintain a competitive advantage on labour costs. However there are also signs of a change in their attitude with respect to healthy and fair labour relations, although unions are still seen as a threat, and so far there is no organization representing workers of the companies surveyed. Despite this, due to their relatively high educational level, workers demand risk-prevention and more training and information on occupational hazards. More work stability and better wages are also on that list. Since a majority of workers are young women, birth control and sexual relation issues should be included in training activities for the prevention of unplanned pregnancies.
It is likely that less labour-intensive flower production will increase in the future. Adequate mechanisms should be put in place to ensure that other companies absorb the released labour force.